This presentation explains how the competitive pressure that enterprises are under shapes their innovative behavior

1. Different kinds of competition
and its effect on innovation
Dr. Shawn Cunningham
www.mesopartner.com

2. Some basics on innovation
• Four kinds of innovative behavior
– Product or service innovation
– Process innovation
– Business model innovation
– Social innovation
• There is a close relationship between
innovation and the way knowledge is
generated, recognized and processed

3. More basics on innovation
• Most enterprises innovate because
– they have to solve a problem
– Their customers demand something specific
– New equipment allows them to do more
• Sometimes enterprises innovate by accident
• Few have a formal system to reflect and adjust
• Very few involve the
whole organization in
innovation

4. Competition
• Enterprises that are facing competition are
more likely to innovate
• Competition is not liked because it is compared
to competition in sport
• There are fundamental
differences between
competition in sport and
competition in business

5. Practical examples of how competition
shapes innovation

6. 5 kinds of competition that influences
innovative behavior
• Running to stay in the same place
• Running to stay ahead of competitors
• Running to catch up with competitors
• A Big leap into the 20th century
• Pushing back the cutting edge

7. Conclusion for enterprises
• Decide that you want to be innovative
– Think with your staff about trends, shifts, lessons
– Formalise things that work, confront things that
don’t work
– Attack “not invented here” and “status quo”
• Decide to be competitive
– Assess your current competitive behaviour
– Set targets that stretch your enterprise, and then
allow your organization to innovate

8. Conclusion for supporting
organisations
• Stimulate competition and rivalry in your target
sector
– Highlight what seems to be working
– Highlight the trends, shifts and patterns
– Assist firms that can specialise or differentiate
• Go beyond product innovation
– Assist enterprises to recognise their knowledge and to
use it to innovate
• Disconnect technology (hardware) from
innovation

9. Thank you
Shawn Cunningham
sc@mesopartner.com
www.mesopartner.com
Blog at www.cunningham.org.za